L1 Visa Employment Termination and Layoffs

This article discusses the most frequently asked questions regarding L1 visa employment termination and layoffs.

L1 visas are not guaranteed. Employment termination on L1 can happen to anyone, regardless of position (L1A or L1B) or time spent in L1 status with the sponsoring company. If this unfortunate situation affects you, understanding the consequences of termination and layoffs with L1 visa is crucial.

If you have been fired or laid off from your job, or quit your L1 visa employment, then you need to know what happens to your status, what options do you have to stay in the US and how much grace period do you have to find a solution. In this article, we answer these questions and explore your options after leaving the sponsoring company.

Remember, L1 visa is for intra company transfer of executives, managers or specialized knowledge employees from the company’s foreign offices to their offices in the US. To qualify for L1 visa, executives, managers and specialized knowledge employees transferred must have held a position with the company abroad for at least one continuous year within the past three years. To learn more, visit our L1 visa – Requirements, Eligibility and Application Period.

Is L1 visa tied to an employer?

Yes. Your L1 visa is tied to your sponsoring employer. An L1 visa restricts you to working for the specific company that sponsored your visa and, in the capacity outlined in your approved petition.

Your primary purpose while in the United States must be to perform services for the sponsoring company consistent with the approved visa terms, and not to engage in matters unrelated to your visa status. To find out more about switching jobs or employers while on L1 visa, visit Transfer L1 visa via change of employer or job.

However, while the L1 visa itself may be valid for several years, there is no guarantee of employment throughout that period. Your employer has the right to terminate your position at any time with or without cause.

Typically, under L1 visa regulations you are admitted for an initial period of stay of up to 3 years. This can be extended in 2-year increments, until you reach the maximum total stay of seven years for executives and managers or five years for specialized knowledge employees.

As an L1 employee, you can be fired for nonperformance or otherwise be laid off due to economic reasons or when your services are no longer needed. Other reasons for L1 visa employment termination can be mergers, acquisitions, or other significant changes in ownership which could impact the company’s eligibility to sponsor your L1 visa, leading to termination.

In either case, the U.S. Citizenship and Immigration Services (USCIS) provides a grace period allowing you to manage interruptions in your L1 employment.

L1 visa employment termination and layoff grace period

Regardless of the reason, if your L1 visa employment terminates you have 60 days grace period to find a new employer and transfer to another work visa such as TN, E2 or other, seek a change of status to a different visa type such as B1/B2 tourist or business visitor or F1 student visa, file for adjustment of status if eligible, or put your affairs in order and depart the US.

The 60-days grace period for L1 visa layoff and employment termination can be used only once during each approved L1 petition validity.

If your L1 visa employment terminates prior to the expiration of your authorized stay as listed on your I94 record, you can remain in the United States lawfully for the shorter of 60 days, or the remaining period on your I94 record.

In order words, the end of the L1 visa grace period is limited by the end of the validity of your L1 status indicated on your I94 record. You can retrieve your I94 record here.

The L1 visa grace period allows you to wind up affairs and depart the US or, if you desire, to change employers or seek other employment and request a change of status if needed and eligible or obtain another work visa abroad. In addition, you can also file an adjustment of status application, if eligible, during the L1 visa grace period.

You are not allowed to work during the L1 visa grace period, unless otherwise authorized. The prohibition to work during L1 visa grace period applies regardless of the reason for termination.

What happens to my L1 visa after leaving the company?

Employer responsibilities are limited when it comes to terminating your L1 visa employment as there are no mandatory reporting requirements to notify USCIS and offer to pay you return plane ticket fare.

Therefore, the company is under no obligation to notify USCIS of your L1 visa employment termination. Employers, in some cases, may notify USCIS and the consulate that issued the L visa of the employment termination.

In case of termination, your employer will likely give you a written notice.

After leaving the company, you are no longer eligible to work under the terms of your L1 visa, unless and until you find a new employer willing and able to petition for a new L1 visa. To change your L1 employer and transfer to another company, you must have an L1 petition approved for your new employment.

Before you can change employer on L1 visa, your new employer must obtain USCIS approval by filing an L1 petition on Form I-129 with the “L” supplement. After USCIS approves the new employer’s L1 petition filed on your behalf, you can transfer and start working for the new company.

L1 visa employment termination: Impact on green card

Finally, if your L1 company was in the process of sponsoring you the green card to become a permanent resident, losing your L1 visa job and leaving the company can also affect your green card application. This applies to all employer-sponsored green card categories, including EB-1C, EB-1B, and PERM EB-2 and EB-3.

However, there might still be hope. If you are already far along in the green card process, you may be able to have another US employer take over the sponsorship.

If you are facing an L1 visa employment termination or layoff and have a pending green card application, consult an immigration lawyer immediately to discuss your options.

Can I stay in the US after my L1 employment terminates?

Yes. Even if you lose your L1 visa job, you do not have to depart the United States right away because you have a 60-day grace period.

You can stay in the US after your L1 visa employment terminates until the end of your grace period, provided that you do not find another alternative to remain in the US.

If you find a way to qualify for a different visa status during this grace period (options discussed below), you may be able to remain in the United States beyond the grace period.

What are my options after L1 visa termination and Layoffs?

Even if your L1 visa employment ends, whether due to a job change, company decision, or your own choice, you still have the following options to remain in the United States legally:

L1 visa for new employer

L1 visa for new employer within the same organization (other subsidiary) or unrelated company. You can change employer on an L1 visa and transfer to another company as long you meet the L1 visa requirements. The new employer must file a new L1 petition on Form I-129 with USCIS, requesting a change of employer on your behalf. You can only start working with the new company after USCIS approves the change of employer. Canadian citizens enjoy a simpler application process. To learn more, visit L1 visa for Canadians.

E2 investor visa

E2 investor visa. If you are a citizen of an E2 treaty country and have the financial resources, you can invest in a US business. With an E2 visa, you can start or buy a business or franchise in the United States. There is no minimum investment required, but you should be prepared to invest at least $50,000. Your spouse and children qualify for E2 dependent visas. With an E2 visa, spouses can work in the United States. You can change status to E2 within the US or apply at US Consulate or Embassy abroad. To find out more information about the E2 visa, visit E2 visa requirements, eligibility and benefits. For Canadian citizens, visit E2 visa for Canadians to learn more.

E1/E2 employee visa

E1/E2 employee visa. You can find another employer which is an E2 business owned by a citizen of the same treaty country as you. Both you and the E2 company’s owner must share citizenship from the same treaty country to qualify for E2 employee visa. You can change status to E2 within the US or apply at US Consulate or Embassy abroad. To find out more, visit E2 visa for employees.

TN Visa (Canada & Mexico only)

TN Visa (Canada & Mexico only). If you are a citizen of Canada or Mexico you can apply for TN visa via change of status, at the port of entry, including international airports in Canada and land border (Canadians only) or consular processing. The TN visa is a work visa, available only for certain professions as determined by the US-Mexico-Canada Agreement (USMCA). You need a job offer from a US employer but the process is simpler than the H-1B visa. Most TN professions require either bachelor’s degree or a combination of degree and experience. Only few professions allow experience in lieu of education.

E-3 visa (Australians only).

E-3 visa (Australians only). If you are a citizen of Australia, you can apply for E-3 visa. You need an offer from a US employer to work in a specialty occupation requiring at least a bachelor’s degree. To qualify, you must possess a bachelor’s degree. The application process is simpler than for H-1B visa and there is no lottery. You can change status to E3 within the US or apply at US Consulate or Embassy abroad.

EB-1A green card.

EB-1A green card (permanent residency). If you possess extraordinary ability in sciences, arts, education, business or athletics through sustained national or international acclaim, you may be able to qualify for EB-1A green card. Generally, you can file an EB-1A petition concurrent with an adjustment of status application because this category often has immigrant visas available at any time. USCIS offers premium processing of 45 days for EB-1A petitions.

EB-5 green card

EB5 green card. If you have the financial resources, you can obtain a green card though the EB5 immigrant investor program. The EB5 visa program offers two investment options depending on the location of your investment. In urban or low-unemployment areas (not considered Targeted Employment Areas or TEAs), the minimum investment is $1,050,000 in a US business or EB-5 Regional Center. However, if you invest in a project located in a high-unemployment or rural area (TEA), the minimum investment amount is reduced to $800,000. Currently, you can file an EB-5 petition and adjustment of status application at the same time because the government has prioritized this category and has made immigrant visas available at any time. USCIS does not offer premium processing for EB5 petitions. To find out more about the risks associated with the EB-5 visa, visit Is EB5 risky?.

EB-2 NIW green card

EB-2 NIW green card. If you possess a master’s degree (or a bachelor’s degree plus five years of progressive work experience) or exceptional ability in the sciences, arts or business, and you have a proposed endeavor that has substantial merit and national importance, you can self-petition in the EB2 NIW to become a permanent resident of the United States. USCIS offers premium processing of 45 days for EB2NIW petitions.

Malescu Law can assist

These are some of the most viable options for L1 visa employment termination and layoffs. However, there may be other visa options available for you depending on individual circumstances. Some of these visas include EB-1C, F-1 student visa and others.

If you need assistance from a highly competent US immigration lawyer to find a solution to stay in the US following your termination contact us or schedule an appointment.

We serve individuals and companies throughout the United States across all 50 states, the District of Columbia and Puerto Rico.

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